Jul 29, 2026, 04:08:52 PM IST

Systematic investment plans (SIPs) are a popular way to build long-term wealth. But returns vary sharply across mutual fund (MF) types depending on market cycles. Here is how different categories performed, as reported by ET Bureau.

ETMarkets.com

Not all SIPs generate the same returns. An ET analysis of 546 equity mutual funds shows that returns have differed sharply across fund categories depending on market cycles. While sectoral funds have dominated recent performance, diversified categories have delivered relatively stable long-term returns.

ETMarkets.com

Among all equity mutual fund categories, Pharma & Healthcare Funds emerged as the best-performing category in the last five years. These funds delivered a return of 18.2% in the said time period, and nearly 17 funds were part of the analysis.

IANS

The ET study shows that sectoral and thematic funds have delivered superior SIP returns in recent years. However, their performance has largely been driven by favourable sector-specific cycles, making returns more volatile than diversified categories.

iStock

While they may not have topped the recent return charts, flexicap, ELSS and largecap funds have delivered relatively moderate but more consistent returns over longer investment periods. These categories continue to remain suitable core portfolio options for long-term investors. Flexicap and largecap funds delivered 10.2% and 8.4% returns respectively.

iStock

Tech sector-based funds were the last in the return chart in the last five years. This category delivered a return of 1.7% in the last five years.

ANI